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Recent developments in the measurement of the effects of trade policy: index number method and trade restrictiveness index

Luca Salvatici ()

No 27, Working Papers from University of Rome La Sapienza, Department of Public Economics

Abstract: In the policy arena, there is a demand for “trade distortion indicators†, but many of the traditional indices are difficult to compute and interpret. Recent developments in the literature have led to new indicators: the Trade Restrictiveness Index (TRI) - measuring the tariff equivalent in terms of welfare -, and the Index Number Method (INM) - measuring the tariff equivalent of the deadweight loss from quality upgrading. This paper shows that the INM can be extended in order to compute a measure of trade distortion equivalent to the TRI.

Pages: 17
Date: 1997-07
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